European Union Hits Smart Card Chip 'Cartel' Letters of Objections

The European Commission has hit a number of smart card chip suppliers with formal antitrust objections, alleging a number of smart card chip companies may have colluded to create a price-fixing scheme in the region.

If the companies are found to have violated European law, the smart card chip makers could be hit with up to 10 percent of the chip makers' total annual global turnover.

The official release by the European Commission contains precious little in the way of details, but The Telegraph reports electronics giant Philips, semiconductor company Infineon and Japanese semiconductor manufacturer Renesas have each received a "statement of objections" letter from the commission. The allegations against the smart card chip makers reportedly date back to 2008.

The European Commission is careful to note that a statement of objections doesn't prejudge the outcome of an investigation, and is simply a formal step in investigations into suspected antitrust violations taking place in the European Union.

According to ZDNet, the commission had considered settlements with the companies under investigation. But, as the commission's official statement notes, talks over possible settlements fell through due to a "lack of progress," from the suspected companies.

"The essence of settlement is to benefit from a quicker, more efficient procedure, and to reach a common understanding on the existence and characteristics of a cartel," EU Competition Commissioner Joaquín Almunia said in a prepared statement. "If that is not possible, the Commission will not hesitate to revert to the normal procedure and to pursue the suspected infringement."

This isn't the first time chip makers have raised the antitrust ire of the European Commission: U.S. chip maker Intel was hit with a massive $1.3 billion fine in 2009 for alleged anti-competitive actions. Intel has since appealed the record-setting fine. Microsoft, Samsung and even Google have all fallen to antitrust investigations by the Commission over the years.